The Bank of Thailand Strengthens Baht Exchange Rate Control Amid US Pressure

On January 30th, the Bank of Thailand announced strong measures to stabilize the exchange rate of the baht, despite the country being placed on the watchlist by Washington due to concerns over currency intervention. This move reflects the efforts of the country’s monetary authorities to demonstrate their ability to manage independently.

Commitment to Respond to International Pressure

According to Jin10, Deputy Governor Chayawadee Chai-Anant spoke in Bangkok about the Bank of Thailand’s determination to address this issue. She emphasized that it would be very difficult for Thailand to be labeled as an illicit influence on the currency, and pledged to maintain regular communication with U.S. financial agencies. This statement shows that the Bank of Thailand is committed to protecting the country’s economic reputation against international pressures.

Tightening Regulations on Online Gold Trading

In response to market volatility, the Bank of Thailand has decided to strengthen oversight of online gold transactions. This extension is driven by recent market conditions: gold prices surged and the dollar weakened, encouraging Thai investors to sell gold, creating large foreign exchange inflows and putting pressure on the baht’s exchange rate. By restricting speculative activities on online platforms, the Bank of Thailand aims to prevent excessive fluctuations.

New Regulations Effective from March

Starting March 1st, online gold trading platforms will be required to comply with stricter payment and reporting requirements. These new regulations include bans on net payments and short selling, forcing investors to only sell physical gold they actually own. All transactions must be conducted electronically, and cash payments are completely prohibited. These restrictions demonstrate the Bank of Thailand’s commitment to increasing transparency and market control, while reducing systemic risks.